Did you miss Bitcoin? Buy this cryptocurrency now

Despite all the volatility, Bitcoin (BTC -1.69% has been an incredible investment for those who bought and held for the long haul. Over the past five years, Bitcoin has grown by 1120% and in that time it has become a form of digital gold.

If you missed Bitcoin, there are still cryptocurrencies that will play a big role in our future. But the future of blockchains may not be digital gold, but rather a utility that could disrupt everything from payment networks to the metaverse. And Solana (FLOOR -4.90% is a blockchain worth investing in today.

Image source: Getty Images.

To advertise

On the road to speed

The Solana blockchain is designed as a fast and low-cost blockchain that enables innovations that would be impossible to run on a blockchain-like Ethereum (ETH -3.63% that are built with proof-of-work (soon to be proof-of-stake) mechanisms that trade speed for security and stability. Given Solana’s relatively new status and explosive growth over the past nine months, there were growing pains such as outages and slow transactions, but there were also some impressive growth figures.

  • Daily active portfolios: up from 354,000 a year ago to 1.1 million in early June 2022.
  • Solana Token Transfers: Averaged about 3.5 million per day since early April 2022.
  • Daily Active Programs: Increase from 67 a year ago to 1,068 on June 2, 2022.

You can see the explosion of daily running programs or applications implemented on the blockchain below.

Active Solana programs per day during the past year.

Image source: Solana Network Analytics.

What draws the most attention to Solana is its huge collection of non-replaceable tokens or NFTs. Developers were able to quickly create NFT projects and use them to fund everything from art to metaverse projects built on Solana. But there’s a lot more going on than NFTs.

There are great decentralized finance apps like Raydium that allow users and projects to provide market liquidity to buyers and sellers for hundreds of tokens, often associated with NFT projects. Solana Pay is a payment tier that uses the Solana blockchain and a token like Solana or USDCwhat is a stable currency pegged to the US dollar, meaning it is intended to maintain the value of a dollar over time.

Several metaverse projects are being built on Solana and this may be the place to look for the future of metaverse technology. Solana’s fast and low-cost transactions make low-cost transactions potentially, opening up the opportunity to sell more digital goods or services in the metaverse than could be available on a blockchain like Ethereum, where transaction costs can range from a few dollars to hundreds of dollars just to buy an item.

Growing pains for Solana

The biggest blow to Solana right now has been the outages and bot attacks that have hit the network. As a result, actual performance was much slower than the theoretical 50,000 transactions per second, and Solana was sometimes unusable. The development team has spent months fixing several bugs in updates with validators.

While these are very serious concerns, they are not unexpected. Ethereum experienced similar problems early on in its existence, including a hack of 3.6 million Ether in 2016 and forks when DoS attacks affected the blockchain. Solana scaled to thousands of transactions per second in record time, causing growing pains. I believe these technical challenges will be resolved in time, but Solana is unlikely to execute tens of thousands of trades per second in the near future, as some had hoped.

The future of blockchain

If you think that blockchain technology will disrupt many industries and that the most widely used blockchains will be fast and cheap, Solana is probably the winner. There are still a lot of bugs to fix and performance issues to fix, but developers have picked up Solana at a rapid pace and investors are pumping money into the ecosystem, making it a cryptocurrency to bet on. †

Leave a Comment